Paraphrasing Tool - x Inbox (1) - minkumar X Topic: Assessments X Assessment 04 - Inc X Bard Ci 25 elearning.kbs.edu.au/mod/quiz/attempt.php?attempt=2306728.cmid=385780&page=7. M Inbox - 60060241@... Poisson Probability... AccountingPod Paraphrasing Tool -... . Bard My first project - M.. 2 Compress PD Question 8 Not yet answered Marked out of 10.00 P Flag question Time left 1:22:46 Consider the aggregate demand (AD), short run aggregate supply (SAS) and long run aggregate supply (LAS) curves shown in the following diagram. CPI 110- LAS 100- 90 - 80 - 70 .60 GDP 15 16 17 18 19 20 ($b) (a) Identify whether this economy is in an expansion or a contraction. Calculate the size of the recessionary or inflationary gap. (2 marks) Type here to search gi w lenovoParaphrasing Tool - X M Inbox (1) - minkuma Topic: Assessments Assessment 04 - Inc X Bard Gn 26 elearning.kbs.edu.au/mod/quiz/attempt.php?attempt=2306728cmid=385780&page=7. MInbox - 60060241@... Poisson Probability... AccountingPod Paraphrasing Tool -... Bard My first project - M. 2 Compress PDF - Co. NAD GDP Time left 1:22:42 15 16 17 18 19 20 ($b) (a) Identify whether this economy is in an expansion or a contraction. Calculate the size of the recessionary or inflationary gap. (2 marks) (b) Briefly explain how this economy might adjust back to long run equilibrium without the implementation of government policy. You do not need to draw a diagram, but you should briefly explain the adjustment process. Do you think the adjustment process you have described is realistic? Briefly explain your answer. (4 marks) (c) Briefly explain how this economy might adjust back to long run equilibrium with the help of monetary policy. You do not need to draw a diagram, but you should briefly explain the adjustment process. Is this monetary policy action likely to have a fast effect, or a slow effect on the economy? Briefly explain your answer. (4 marks) ABIFOX Any text entered here will be displayed in the response input box when a new attempt at the question starts. Type here to search lenovo